FCC

J&K CM Rules Out Power Privatisation, Focuses on Sector Reform

2025-09-19

Jammu and Kashmir Chief Minister Omar Abdullah has dismissed speculation regarding privatisation of electricity in the Union Territory, emphasising that his priority is to strengthen and reform the power sector.

“We are not discussing privatisation. By reducing losses, improving billing efficiency, and enhancing revenue, there will be no need for it. My vision is to strengthen and reform the power sector in J&K,” Abdullah stated.

He addressed the gathering at the 58th Engineers’ Day at SKICC on Monday evening, an event honouring Bharat Ratna Sir M Visvesvaraya for his pioneering contributions to engineering in India.

Abdullah highlighted that electricity generation and efficient distribution are key to economic prosperity in J&K. He underscored the need to reduce power losses and harness the region’s vast hydropower potential to bolster the economy.

“This is the only way to improve J&K’s financial situation. We should generate electricity and sell it to other regions, especially during their production shortfalls. But first, we must reduce losses in the power sector,” he said.

On the challenges of hydropower versus renewable energy, the CM noted that while hydroelectricity has a high installed cost, the per-unit cost declines over time. “With solar power now available at Rs 2 to Rs 2.5 per unit, competition is difficult. Yet hydropower remains our only viable resource, and we must continue developing projects alongside improving efficiency,” he added.

Abdullah reaffirmed that tariff rationalisation should consider people’s ability to pay, ensuring the wealthy contribute more while the economically disadvantaged pay less.

He explained that he retained the Power portfolio personally, stating, “If we truly want to make J&K prosperous, the most important sector is the Power Development Department.” He urged officials to maintain momentum in reducing losses and enhancing efficiency.

The CM also lauded landmark hydropower projects such as the Baglihar hydro-electric project, which transformed J&K’s power scenario despite challenges, including the absence of counter guarantees.

Tags :